Moody's cuts Anglo Irish, Irish Nationwide banks

Moody's Investors Service said it downgraded the bank deposit ratings of Anglo Irish Bank Corp. Ltd. and Irish Nationwide Building Society to Caa1/not-prime from Baa3/prime-3, which is the same level as the unguaranteed senior unsecured debt ratings of the two institutions.

The Caa1 long-term bank deposit ratings remain on review for possible downgrade, in line with the review on the unguaranteed senior unsecured debt ratings, Moody's added.

There is no rating impact on its senior unsecured and subordinated debt ratings, the agency said, and on the government-guaranteed debt ratings.

The actions follow the transfer of the vast majority of the deposit bases of the two institutions to Allied Irish Banks and Irish Life & Permanent, respectively.

At the Caa1 level, these ratings no longer incorporate any systemic support, reflecting the much lower systemic importance of these two institutions as evidenced by the transfer of the deposits and the wind down of their remaining assets over the longer term, Moody's said.

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